Gatwick is the UK’s second-largest airport, servicing 45 million passengers per year. It achieved “Carbon Neutral” accreditation in 2017 and is also a member of RE100 - a global collaboration of hundreds of large companies voluntarily committed to 100% renewable electricity.
Sourcing Renewable Energy, Renewable Energy Certificates (RECs), and Renewable Strategy Workshops
Electricity accounts for 75% of the airport ground operations’ carbon footprint, so to achieve their substantial renewable energy targets, it was essential to buy from 100% renewable sources. In a market with increasing commodity and non-commodity costs, the airport wanted a renewable electricity sourcing solution that would be sustainable, contribute to the diversification of the UK energy system, but that didn’t come at a premium price.
World Kinect executed renewable strategy assessment and leadership workshops, investigated the purchase of RECs, and conducted a broad-based competitive tender for renewable electricity needed to secure a new electricity supply contract that would enable Gatwick Airport to maintain carbon neutrality, as well as deliver cost and operation benefits.
World Kinect Solution
World Kinect conducted a comprehensive renewable strategy assessment workshop involving all the key stakeholders from within the airport to get everyone aligned on an agreed strategy to achieve the challenging carbon reduction needs of the business.
Thoroughly investigated the cost of purchasing REGO (Renewable Energy Guarantees of Origin) certificates.
An important objective of the tender was achieved when Gatwick Airport moved from 100% biomass to 50% wind and 50% biomass products with full REGO certification instead.
Executed the price risk management strategy, with services including trading, market analytics, pricing updates, reports on transactions, and a view of trading performance based on agreed benchmarks. All of this and carbon data was shared through our World Kinect Online portal.
The airport secured a new renewable electrify supply contract, achieving £90K saving on contract costs.
The fully traceable new REGO certification position secured a substantial part of “carbon neutrality”.
Gatwick gained full transparency and on-demand access to their latest energy and emissions information, centralized in one reporting portal for better decision making and carbon footprint oversight.
24/7 VISIBILITY OF USAGE, COST, & EMISSIONS
World Kinect managed the re-tender and negotiation process really proactively. In particular, the supplier bid analysis provided great clarity for decision making. The fee outcome was also very positive for Gatwick.”
MARTIN BILTON, ENGINEERING MANAGER, UTILITIES,
GATWICK AIRPORT, UK
IN SUPPLY CONTRACT
Carried out an extensive procurement process analysing many suppliers to improve all aspects of the contract, in addition to the renewable electricity element. This included contract conditions that made trading terms more transparent, leading to a significant reduction in transaction costs.